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You have every reason to be skeptical of my claims. I will not share the ticker since that would mean I am trying to get publicity. Another poster said that you

You have every reason to be skeptical of my claims. I will not share the ticker since that would mean I am trying to get publicity. Another poster said that you don't know for sure whether it is naked shorting or wash trading. He is correct and I don't have mathematical proof. But there are enough signs: 1) Company had debenture that was paid off early to toxic lender 2) Toxic lender has been caught and fined by the SEC in the past 3) There is always someone selling below the last market price in this thinly traded stock. 4) Every day the stock is walked down by short ladder attacks. 5) If we model the problem like this, lets say > 50% was short volume, then they could not have covered the same day. Accumulate this over a year. There are over 2M uncovered short sales. 6) Every day like clockwork at close the stock is marked down. We surmise it is because of margin (calculations like 5 are just modeling, we think he is short 10s of millions of shares). 7) Company got a call leaked by the toxic lender trying to raise money. Call was leaked. 8) Wash sales are trickier to prove: but we notice odd lot orders trading without appearing on L2. I have many screenshots that show this. Notice I am not 100% sure myself. I am a computer scientist who got caught in this and question my sanity sometimes (as someone else posted a while back, there are many groups who obsess and conspire over this). So any advice, help or insight might be useful.

abritrum 5y ago
Another huge red flag: a warrant for share dividend was distributed with a strike price that would make 1/10 the number of short sales held by the short added to his burden. When the warrant price hit, the short sold 600k shares in a few minutes to get the price down.
deleted 5y ago
[deleted]
ProjectArcturis 5y ago
I work in finance and trade stocks every day. Honestly, this seems like extremely weak evidence for any kind of market manipulation. The price movements you've seen are quite consistent with a sucky company that's going down because it's overvalued. It's generally pretty hard to short OTC stocks, so the idea that someone is out there short 10s of millions of shares is pretty far-fetched. And to what end? If the stock has gone down they're probably covering, not adding. Roughly half of OTC stocks are themselves scams, run by crooks. Is the company funding itself by continuously selling shares? Check their SEC filings for ATM offerings. If you genuinely think the fundamental value (not the share price!) of the company will be substantially higher than its current trading value, then go ahead and take advantage of the artificially low price, buy some, and be very patient and ignore the day-to-day stock price movements. If you're in this stock because you've convinced yourself some short seller has overextended themselves and will get squeezed, well... Prepare to be disappointed.
- abritrum 5y ago
  Thank you for the advice. This is a little special because the owners of the loan company have been fined by the SEC for precisely the naked short selling I am accusing them of (without revealing them, an unrelated case is https://www.thestreet.com/investing/stocks/sec-charges-filed-in-sedona-case-10277405 https://www.thestreet.com/investing/stocks/sec-charges-filed...). Naked shorting a stock to 0 and claiming tax benefits is what some of these toxic lenders do. I am invested only in the amount I can afford to lose. But I would like to not lose even that :-) so will heed your advice.
  - ProjectArcturis 5y ago
    Does the stock you like have a death-spiral PIPE deal like the one in the article? If so, sell. You're correct that someone is pounding the stock down, but what you're missing is that management is helping them do that by printing new shares and selling to the PIPE lender at a discount. It's just a way for management to pay their own salaries by diluting the existing shareholders. There will be no reckoning. What they're doing is scummy but legal. The selling will only stop when no outsiders will buy any shares at any price. Well, legal as long as they don't short ahead of time. But either way, it's a terrible investment for you.
    - abritrum 5y ago
      They had a death spiral PIPE deal, but they paid off the loan. The company was (edited: almost) shorted to death in the months during they had the loan. Appreciate the advice.
chollida1 5y ago
Well that's disappointing, I held out hope that you would have some actual evidence. It doesn't seem like you have anything other than what happens to ever single penny stock. 1 and 2 have nothing to do with any of your claims 3 is the only way to sell stock in a thinly traded market. 4 i'e been in the industry for more than 10 years and have never come across anyone who has actually performed these fabled short ladder attacks. This isn't something that happens, its a creation of the hive mind of /r/superstonk. If they want to say its a real thing then the onus is on them to put forward some evidence that it happens. I so far havent' seen anything that looks compelling. Point 5 makes no sense at all, why would people cover all at the same time? 6. this is what happens with shitty stocks that has someone trying to offload their long position, it by definition, has to close down as the selling pressure overwhelms the buying pressure. 7. again no sequitor and has nothing to do with shorting or wash trading. Do you have any actual data to back up the wash trade or short claims? And as a side note, shorting to zero isn't something that happens as you need to close out your position by buying to make any money. And as stock prices drop they run the risk of being delisted before the shorter can buy back their position. Which is a terrible position to be in. A typical shorter will short at $100 and buy back at $50 or $25 and doesn't mess with anything under a $1.
- deleted 5y ago
  [deleted]
- abritrum 5y ago
  So I wrote a post in haste and deleted it, here is a more reasoned response. If you want definitive proof, you need to see sell tickets. That is what our whistleblower reports to the SEC have been requesting. I do not have sell tickets. I wrote this as a response before: my biggest proof was that over the past year, if I tally up the number of uncovered short sales it is more than 2M. How do I know that these sales are uncovered? If there is any day with more than 50% shorting, I know that the short cannot have covered. If I tally up the differences, I get at least 2M uncovered over the past year. This model assumes that the short covers the same day (which we can see from tape they do not). Even if they did cover the same day, they are still short 2M shares uncovered. I was mistaken with "short ladder attack" - I should have said short attack. The price action is strange. A bunch of selling say happens at one price point, and then the seller reduces the price by 10c and offers a huge lot. When we try to take the wall, the offer is withdrawn. We have definitive proof of spoofs that were withdrawn like this. 1 and 2 are very relevant to the current discussion. Since the toxic lender has done exactly this to other companies. As soon as a loan is given, they short the company to shit. Except here the company returned the loan. They have been fined by the SEC for similar behavior before and this playbook is seemingly related. The closest is (Badian and Sedona, https://www.sec.gov/news/press/2003-26.htm https://www.sec.gov/news/press/2003-26.htm). So it is not inconceivable that this is happening here. I have screenshots that I have submitted to the SEC. I can share them with you. Like I said, I understand the OTC is ridden with fraud. And this may well be the case here and I fully admit I may be wrong.

abritrum 5y ago

Another huge red flag: a warrant for share dividend was distributed with a strike price that would make 1/10 the number of short sales held by the short added to his burden. When the warrant price hit, the short sold 600k shares in a few minutes to get the price down.

deleted 5y ago

[deleted]

ProjectArcturis 5y ago

I work in finance and trade stocks every day. Honestly, this seems like extremely weak evidence for any kind of market manipulation. The price movements you've seen are quite consistent with a sucky company that's going down because it's overvalued. It's generally pretty hard to short OTC stocks, so the idea that someone is out there short 10s of millions of shares is pretty far-fetched. And to what end? If the stock has gone down they're probably covering, not adding. Roughly half of OTC stocks are themselves scams, run by crooks. Is the company funding itself by continuously selling shares? Check their SEC filings for ATM offerings. If you genuinely think the fundamental value (not the share price!) of the company will be substantially higher than its current trading value, then go ahead and take advantage of the artificially low price, buy some, and be very patient and ignore the day-to-day stock price movements. If you're in this stock because you've convinced yourself some short seller has overextended themselves and will get squeezed, well... Prepare to be disappointed.

abritrum 5y ago
Thank you for the advice. This is a little special because the owners of the loan company have been fined by the SEC for precisely the naked short selling I am accusing them of (without revealing them, an unrelated case is https://www.thestreet.com/investing/stocks/sec-charges-filed-in-sedona-case-10277405 https://www.thestreet.com/investing/stocks/sec-charges-filed...). Naked shorting a stock to 0 and claiming tax benefits is what some of these toxic lenders do. I am invested only in the amount I can afford to lose. But I would like to not lose even that :-) so will heed your advice.
- ProjectArcturis 5y ago
  Does the stock you like have a death-spiral PIPE deal like the one in the article? If so, sell. You're correct that someone is pounding the stock down, but what you're missing is that management is helping them do that by printing new shares and selling to the PIPE lender at a discount. It's just a way for management to pay their own salaries by diluting the existing shareholders. There will be no reckoning. What they're doing is scummy but legal. The selling will only stop when no outsiders will buy any shares at any price. Well, legal as long as they don't short ahead of time. But either way, it's a terrible investment for you.
  - abritrum 5y ago
    They had a death spiral PIPE deal, but they paid off the loan. The company was (edited: almost) shorted to death in the months during they had the loan. Appreciate the advice.

chollida1 5y ago

Well that's disappointing, I held out hope that you would have some actual evidence. It doesn't seem like you have anything other than what happens to ever single penny stock. 1 and 2 have nothing to do with any of your claims 3 is the only way to sell stock in a thinly traded market. 4 i'e been in the industry for more than 10 years and have never come across anyone who has actually performed these fabled short ladder attacks. This isn't something that happens, its a creation of the hive mind of /r/superstonk. If they want to say its a real thing then the onus is on them to put forward some evidence that it happens. I so far havent' seen anything that looks compelling. Point 5 makes no sense at all, why would people cover all at the same time? 6. this is what happens with shitty stocks that has someone trying to offload their long position, it by definition, has to close down as the selling pressure overwhelms the buying pressure. 7. again no sequitor and has nothing to do with shorting or wash trading. Do you have any actual data to back up the wash trade or short claims? And as a side note, shorting to zero isn't something that happens as you need to close out your position by buying to make any money. And as stock prices drop they run the risk of being delisted before the shorter can buy back their position. Which is a terrible position to be in. A typical shorter will short at $100 and buy back at $50 or $25 and doesn't mess with anything under a $1.

deleted 5y ago
[deleted]
abritrum 5y ago
So I wrote a post in haste and deleted it, here is a more reasoned response. If you want definitive proof, you need to see sell tickets. That is what our whistleblower reports to the SEC have been requesting. I do not have sell tickets. I wrote this as a response before: my biggest proof was that over the past year, if I tally up the number of uncovered short sales it is more than 2M. How do I know that these sales are uncovered? If there is any day with more than 50% shorting, I know that the short cannot have covered. If I tally up the differences, I get at least 2M uncovered over the past year. This model assumes that the short covers the same day (which we can see from tape they do not). Even if they did cover the same day, they are still short 2M shares uncovered. I was mistaken with "short ladder attack" - I should have said short attack. The price action is strange. A bunch of selling say happens at one price point, and then the seller reduces the price by 10c and offers a huge lot. When we try to take the wall, the offer is withdrawn. We have definitive proof of spoofs that were withdrawn like this. 1 and 2 are very relevant to the current discussion. Since the toxic lender has done exactly this to other companies. As soon as a loan is given, they short the company to shit. Except here the company returned the loan. They have been fined by the SEC for similar behavior before and this playbook is seemingly related. The closest is (Badian and Sedona, https://www.sec.gov/news/press/2003-26.htm https://www.sec.gov/news/press/2003-26.htm). So it is not inconceivable that this is happening here. I have screenshots that I have submitted to the SEC. I can share them with you. Like I said, I understand the OTC is ridden with fraud. And this may well be the case here and I fully admit I may be wrong.